Energy Action Profiled in Eco Investor, December 2011: "Energy Action Powers On After IPO"
Thursday, 08 December 2011 13:56
Eco Investor is Australia's specialist environmental investment magazine. In their December 2011 issue, they have highlighted Energy Action as an "emerging company". Below is the full extract from the latest issue of Eco Investor. For more information about Eco Investor, please visit http://www.ecoinvestor.com.au.
Extract from December 2011, page 2
Energy Action Powers On After IPO
One of this year’s few environmental IPOs has performed well, with the $1 shares of Energy Action continuing to trade well above their issue price.
Energy efficiency company Energy Action listed on the ASX on 13 October after its $3.8 million IPO was oversubscribed. The shares listed at a premium of around $1.30 and are currently trading at around $1.28. The lowest they have reached is $1.20, and the highest is $1.315.
Turnover has also been low, indicating that investors are hanging on. Despite the high premium listing, stag sellers were low with only 44,000 shares sold on the first day and 23,500 on the second day. The highest turnover was on 16 November when 83,500 shares changed hands. Energy Action has 25.1 million shares on issue but volumes on most days have been very modest.
Energy Action expects to benefit from the introduction of the price on carbon and rising power prices. The company runs an energy auction and energy management and efficiency business. Its Australian
Energy Exchange holds online auctions where electricity retailers bid to fulfil client requirements. Chairman, Ronald Watts, said the auctions are designed to get a business the best possible deal from all retail offers.
But Energy Action makes 60 per cent of its revenue from energy management and efficiency services
through its Activ8 energy management and contracting service and its Activ8+ energy efficiency and sustainability partnering service.
The company’s website has six case studies where it has assisted businesses to reduce their costs and energy use. These are Red Lea Chickens Pty Ltd, The University of Sydney, The Nexus Building in Sydney, The Cachet Building in Sydney, Anzpac Services (Australia) Pty Ltd, and Bay Tropical Fish Farm.
The estimated saving for The University of Sydney for the period from July 2011 to December 2012 is $1.38 million, a 6.75 per cent saving on its current electricity costs.
Energy Action also has an online carbon tax calculator to help businesses workout the impact of their electricity and gas usage.
Energy Action has low debt, is profitable and pays a dividend, although the prospectus did not give the level of dividends. (ASX: EAX)